In perfect competition
a. the demand curve facing the firm is a horizontal line at the market price
b. marginal revenue equals total revenue
c. total revenue always exceeds variable cost
d. price always exceeds average total cost
e. marginal cost always equals average cost
A
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Banks deal with problems of adverse selection by
A) charging high interest rates. B) gathering information about the default risk of borrowers. C) making only short-term loans. D) making only long-term loans.
The demand curve facing a single-price monopolist
a. is the same as its average revenue curve b. is the same as its marginal revenue curve c. is the same as the perfect competitor's demand curve d. lies above its average revenue curve e. lies below its marginal revenue curve
Producer surplus:
a. measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product. b. is illustrated by the area above the supply curve and below the market price. c. is maximized in market equilibrium. d. all of these.
Elected officials and government employees:
a. are agents of the people b. always act in the best interest of the people, even at the expense of their own interest c. both of the above d. neither of the above